Pre-deposit reduced for arguable tax dispute, with appeal to be decided on merits after compliance.

Further pre-deposit was directed in a reduced amount because the appellant had already made part-payment and the dispute was considered contentious and arguable. The Tribunal then required compliance with the revised deposit condition and directed the Commissioner (Appeals) to decide the appeal on merits after verifying such compliance. The stay petition and appeal were disposed of on that basis, with no merits determination made by the Tribunal itself.

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Issues: Whether the appellant should be required to make a further pre-deposit for hearing of the appeal and whether the matter should be sent back for decision on merits after compliance.

Analysis: The appellant had already deposited part of the demanded amount. Considering that the dispute was contentious and arguable, and taking note of the deposit already made, the Tribunal fixed a further deposit in a reduced amount and directed the appellate authority to decide the appeal on merits after verifying compliance.

Outcome: Further deposit directed. The stay petition and appeal were disposed of with a direction to the Commissioner (Appeals) to decide the appeal on merits after compliance.

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